NZD/USD: downside open on supply, bulls out of steam?

By FXStreet FXStreet (Guatemala) – NZD/USD is currently trading at 0.6404 on the offer with a high of 0.6450 and a low of 0.6385.

NZD/USD supply has called the bull run from below the 200 SMA on the hourly sticks from down at 0.6288. The bird garnered some demand again, tracking the performances in riskier asset classes and a positive end to Wall Street last month.

However, as we approach the Nonfarm Payrolls and enter into the month where the FOMC meet again, profit taking and being too long of anything is a risk which leaves the 0.64 handle vulnerable to the downside and a test of 0.64 the figure has seen a dip into the 0.6390’s, despite the poor ISM manufacturing from the US today, The consensus was for 50.6 and actual missed at 50.2 vs a previous of 51.1, but still above 50 and in the Fed’s preferred territory.

NZD/USD levels

Technically, on further offers, the price may find support by the 20 SMA on the 4hr charts at 0.6372, a long line of resistance and support. The 20 DMA on the daily sticks a little further out at 0.6335 also could offer some support while MACD on the 4hr chart …read more

Source:: FX Street